China’s Wanda Forecasts 30% Leap in Entertainment Revenues

Dalian Wanda is forecasting a 30% growth in its revenues following the recently agreed deal to buy Legendary Entertainment for $3.5 billion.

For 2016 the company said that target revenue from its cultural sector businesses is $10.2 billion (RMB66.6 billion). That follows a year in which the cultural sector expanded by 45% and revenue hit $7.83 billion (RMB51.3 billion). it said that Legendary ‘s revenues in 2016 are forecast to be $613 million (RMB4.02 billion.)

The privately held parent group, which controls a mixture of private and publicly-listed companies, announced details of its yearly performance and new year targets at a corporate retreat in Xishuangbanna, Yunnan Province, site of Wanda’s newest full-scale theme park.

The group as a whole is expected to see growth in net asset value and profits in 2016. But it is forecasting a 12% drop in revenues, which reflects the slowdown in the Chinese property markets.

Within the culture group, the Shenzhen-listed Wanda Cinema Line had revenues of $1.22 billion) RMB8 billion, up 49.9% year on-year and that revenue from box office receipts reached $961 million (RMB6.3 billion), growing 49.6% year- on-year, both figures in line with the trend in nationwide box office. Spectator numbers hit 151 million, also up 49%.

It said that revenue from online ticket sales grew to $610 million (RMB4 billion), up 240% year-on-year and that online ticketing now accounts for 65% of ticket sales revenue. Wanda Cinema Line’s loyalty scheme Wan Club has more than 50 million members.

During the year Wanda Cinema Line added 941 cinema screens, bringing the total number of screens to 2,557 at 292 complexes.

Unlisted film production and investment company Wanda Pictures grew box office receipts to $939 million (RMB6.15 billion), revenue to $88.5 million (RMB 580 million), up 37%.

Box office receipts from films distributed by Wuzhou Film Distribution reached $1.02 billion (RMB6.7 billion), which Wanda says makes the one year old unit the top distributor in China.

Wanda group chairman, Wang Jianlin has touted the idea of listing either or both the film production and distribution companies on the stock market.

In 2016, Wanda Cinema Line will open 77 new theaters and add 698 screens, excluding acquisitions.